Please provide the accurate answer to this financial accounting problem using appropriate methods. Everest Sporting Goods reports inventory using the lower ofcost and net realizable value (NRV). Below is informationrelated to its year-end inventory?InventoryQuantity Cost NRVRunning Shoes 15$80 $75Basketballs30$50 $55Calculate the amount to be reported for ending inventory.

Step 1: Definition of Lower of Cost and Net Realizable Value (NRV)The lower of cost and NRV rule…

Answered: Everest Sporting Goods reports…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 7MCQ

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Everest Sporting Goods reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory? Inventory Quantity Cost NRV Running Shoes 15 $80 $75 Basketballs 30 $50 $55 Calculate the amount to be reported for ending inventory.